Explain the economic concept of opportunity cost
What will be an ideal response?
The opportunity cost of something is the best alternative that we give up when we make a choice or a decision.
You might also like to view...
National defense services provided by the military are:
A. excluded from GDP because they are intermediate goods. B. included in GDP at cost. C. excluded from GDP because they are not sold in markets. D. included in GDP at market prices.
The only way governments can finance a deficit is by printing new money
Indicate whether the statement is true or false
Theory suggests that minimum-wage laws create ________ unemployment, especially among younger workers
A) frictional B) cyclical C) structural D) under-reported
Along an IS curve as income levels __________, saving is larger, so the interest rate must be __________ to expand the level of investment so it will be equal to saving
A) increase; higher B) increase; lower C) decrease; higher D) decrease; lower